Building the Ownership Economy: Why We Created The Unlock Ownership Fund

The American economy is failing most people. We created the Unlock Ownership Fund to accelerate a just transition away from this extractive system by using catalytic capital to fund what truly matters: democratic employee and community ownership. It's time to shift who owns, who decides, and who thrives.

We believe that shared ownership, paired with robust governance, is the most effective lever to take back our economy from the broken extractive policies we currently use that are hurting most people. By transferring a degree of control and equity to a wider group of stakeholders, shared ownership models aim to counter the bent of our current economy toward wealth inequality, corporate power concentration, and the commodification of public goods. 

The Unlock Ownership Fund is a Multi-Donor Fund we created to accelerate a just transition from our extractive economy to one centered on equitable ownership. We do this by deploying catalytic capital—patient, flexible, and non-extractive investment—to groundbreaking funds and initiatives that are building wealth in communities through democratic employee ownership and equitable community ownership models.

As co-founders of the Unlock Ownership Fund, we are driven by a blunt observation: the American economy, as currently designed, prioritizes shareholder extraction over shared prosperity. It is actively failing most people. We've seen undeniable proof that who owns and how assets are governed dictates whether communities thrive or merely survive.

We live steeped in the consequences of an economic system obsessed with short-term gains, one in which wealth and power dangerously consolidate in the hands of a few. The statistics are indictments. Nearly 40% of American households struggle financially. The racial wealth gap isn't closing; it's a persistent canyon, with Black families holding just 16 cents for every dollar of White median wealth. More and more Americans are feeling the economic anxiety from a system that is consolidating wealth and power at the top for a small group that is increasingly blatant about their desire and ability to extract from the rest of us.

This isn't an unfortunate outcome; it's the predictable result of an economic ideology that values capital extraction above human dignity. It's a system functioning as designed.

Our Theory of Change: From Extraction to Wellbeing

This conviction is the "why" behind the Unlock Ownership Fund. Our work is a direct expression of our Theory of Change, which begins with rejecting this extractive status quo. We believe capital must be a tool for transformation, not speculation.

Our approach is built on a few fundamental truths, but one stands out: Ownership and Governance matter.

Who owns critical assets is only half the equation; the other half is who decides. We believe that equitable models of employee and community ownership, combined with democratic governance, are revolutionary tools for building tangible wealth, fostering economic democracy, and creating resilient, locally rooted economies that serve their communities rather than private interests.

This is why our mission isn't just to alleviate symptoms; it's to accelerate the transition to an equitable ownership economy, building durable wealth and wellbeing, particularly in communities historically plundered by the current system.

The "What": Catalytic Capital to Fuel a Movement

After a successful pilot year, we're scaling the Unlock Ownership Fund to seize a unique historical moment. We are a Multi-Donor Fund deploying catalytic capital—patient, flexible, risk-tolerant, and non-extractive.

This philosophy is also a core part of our design. We're not just deploying capital differently; we're deciding differently. We are committed to an inclusive governance model that intentionally shifts power away from traditional, top-down philanthropy. Our Investment Committee isn't just donors; it's a dynamic mix of emerging fund managers and industry experts—the very people closest to the challenges and opportunities. This ensures our capital is guided by lived experience and deep expertise, not just by those who write the checks. We have been thrilled with the creative and catalytic ways our investment committee has deployed money to communities, which simply would not happen without their involvement, since they deeply understand the ownership economy.

Fostering Transformative Models & Building Impact Ecosystems is one of three pathways in our theory of change. We are seeding the economy of the future by financing transitions to employee ownership and supporting the new infrastructure—the emerging funds and pioneering initiatives—that conventional finance, blinded by its obsession with "market-rate" (maximum extraction) returns, systematically overlooks.

Our focus is on two fundamental pillars of wealth and power:

1. Where You Work (Democratic Employee Ownership): The "Silver Tsunami" of 2.9 million retiring business owners presents a massive opportunity. The default exit path often leads to closure, leaving a community without that established business or acquisition by extractive private equity, stripping community wealth. We see a profoundly better alternative: funding transitions to real employee ownership (ESOPs, cooperatives, EOTs) that share at least 30% with the employees. This anchors businesses locally, builds substantial wealth for workers, and creates more democratic, resilient enterprises.
2. Where You Live (Equitable Community Ownership): Homeownership remains key to generational wealth, yet systemic racism persists, reflected in Black homeownership rates lower than in 1968. We reject incrementalism. We fund transformative models like Community Land Trusts (CLTs), Mixed-Income Neighborhood Trusts (MINTs), and innovative down-payment assistance funds. These are tools for permanent affordability, community control, and wealth-building for low-income and BIPOC families.

Why Locally Owned Businesses and Housing Matter

Employee-owned businesses don’t just benefit the employees. Locally owned businesses promote a stronger local economy, foster a sense of community, offer personalized products and services, and typically have a smaller environmental impact. Consolidated brands, on the other hand, often prioritize profits for corporate headquarters and remote shareholders and can contribute to wealth concentration and a more homogenized market.

Money spent at local, independent businesses is more likely to be recirculated within the community. Studies have shown that locally owned businesses return three to five times as much per dollar of sales to the local economy as chain competitors. A local hardware supplier, for instance, might use a local printing service, which then employs local designers, creating a ripple effect. 

Communities with a diverse ecosystem of small businesses tend to be more economically resilient. Relying on a single major employer or chain store can make a town vulnerable to economic shocks if that one company downsizes or leaves.

Local businesses are a key source of local tax revenue, with sales taxes often reinvested in community services such as schools, libraries, and public safety. In contrast, large corporations often receive tax breaks or use legal means to lower their tax liability, leaving fewer benefits for the host community.

Similarly, locally owned housing prioritizes community stability, affordability, and responsive tenant relations over short-term financial returns. Private equity firms, conversely, tend to focus on maximizing profits for investors through aggressive rent increases, high fees, and sometimes neglected property maintenance.

A Unique Moment to Shift Power

The movement for an ownership economy directly confronts the logic of capital concentration. And right now, conditions are uniquely ripe: the massive supply of businesses for transition meets the vast, largely untapped potential of Donor-Advised Funds (DAFs)—over $250 billion sitting idle, earmarked for impact but constrained by outdated investment norms.

The Unlock Ownership Fund acts as essential infrastructure. We provide a clear pathway for DAF holders and foundations to deploy their capital not as charity, but as catalytic investment in a new economy. This capital doesn't just fund deals; it unlocks them, de-risking them for traditional lenders and building an ecosystem of diverse, community-rooted fund managers and entrepreneurs.

This is our "what." We are building the financial plumbing for an economy where ownership and power are broadly shared.

After proving the model, we are ready to scale. We are moving beyond asking if a different economy is possible to actively building it. We are rewriting the rules, shifting power, and ensuring more people benefit directly from the value they create.

This is more than an investment. It's a lever for systemic change. It’s a declaration that a more just, equitable, and democratic economy isn't just a dream—it's the necessary future we are building, starting now.

Do you have a DAF? Are you looking for an impactful, simple solution to leverage those assets in an outsized way? We would love for you to join us.